Small business

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SMALL BUSINESS
Small Business
village and small scale industries together provides largest employment
opportunities in India.

Micro, Small and Medium Enterprises development (MSMD) Act, 2006

Defines classification of small Business as

Manufacturing
limit on investment in plant
& Machinery
micro - upto 25 lakhs
small - upto 5 crore
medium - upto 10 crore
Services
limit on investment in
equipment
micro - upto 10 lakh
small - upto 2 crore
medium - upto 5 crore

Role of Small Business in Rural India

1.Employment (as they are labour intensive)
2.Rural development
3.Strenghten economic condition
(as they provide more income to people of rural areas)
4.Mobilisation of local Resources (present in that areas only)

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Govt. assistance to Small Business units

Incentives offered
Institutional support
1. Institutional support
A) National small industries corporation (NSIC)
set up in 1955
objective was to promote and fasten the growth of SSI in the
country

Main focus on
→ Supplying imported and heavy machines on easy installments
→ Procure, supply & distribute imported Raw materials
→ Export SSI products
→ Provides technological assistance
→ Develop software technology park and technology transfer centers

B) The District Industries centres (DIC)

Launched on 1 May 1978
Provides assistance Integrated administrative frame work to SSI at
district levels
DIC is an institution which provides all services and support to
entrepreneur for setting up small scale Business.
Such as, identification of suitable scheme ,Preparing feasibility report,
Arranging credit etc.

PRICE DETERMINATION (ECONOMICS)

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Incentives by govt. to Rural areas industries
i) Development of infrastructure facilities
ii) Tax rebate
iii) Land at concessional Rates
iv) Finance at easy to terms
v) Providing subsidy

Entrepreneurship development
Entrepreneur Enterprise
Businessman (person) Business unit

(process)
Entrepreneurship development

Entreprenurship is the process of setting up one's own business as

distinct from pursuing any other economic activity.
It is important for national growth and social development as it
creates more job providers than Job seekers.
Entrepreneurs bears the cost and risk of launching a new venture,
developing new products adapting new technology and developing
new market (in and outside country)
It plays an important / key role in an economic development .

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Need for entrepreneurship
Provides innovation
Increases growth
Boost employment opportunities
Life line of a nation. (more entrepreneur = more development)
Social Benefits ( more competition = decrease price)
which helps lower section of society
Process of entrepreneurship (sequence )
Self discovery (what he/ she lowes doing)

Identifying opportunities (need, want & problems)

generating and evaluating ideas ( through creativity, experience,

discussions etc.)

Planning (Research, making strategy & Business plan)

Raising start-up capital

start -up (launch enterprise)

growth

harvest (selling it to other & enjoying reward) [if interested]

INTERNAL TRADE (BUSINESS)

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Start-up INDIA SCHEME

initiative of govt. of India
objective is to develop a strong ecosystem for empowering and
promoting innovation and startup in the country

As per the scheme, Startup of refers to an entity incorporated

registered in India, not older than 10 years , should have annual
turnover not exceeding 100 crore in any of the financial years and
working towards innovation, development or commercialisation of
products/service/processes driven by technology or IPRs and patent.

Action points (Benefits in Scheme)

Simplification & hand holding (easy compliance)
Patent & IP Benefit (upto 80% rebate in fees) (and faster patent
registration)
Income tax exemption ( for 3 years)
one day registration
capital gain exemption (for first 3yrs)
Funding schemes (govt. announced 10,000 cr.
find & 500 cr. credit guarantee)

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Ways to fund Startup

1. Boot Strapping / self funding

2. Crowd funding News way of funding a start-up in India.

It like taking a loan, pre-order, investment or donation
Ex → Pay just 500 to be the first to ride upcoming Ola scooter.

3. Angel investment They are individuals with surplus cash , they

invest in Start-up and also give advice.

4. Venture capital Professionally managed funds who invest in

companies that have huge potential this generally invest against equity
& exit when there is an IPO.

5. Business incubators and accelerators incubators is like a parent

who nurtures the (child), Business, whereas accelerator helps to run or
take , a giant leap in business .

6. Microfinance and NBFC'&

(Non Banking financial corporation)

They Basically finance & those who either do not have access to normal
Banking service or not Qualified for Bank loans

RECTIFICATION OF ERRORS (ACCOUNTS)

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Intellectual property Rights (IPR)
Creation begins with an idea and once the idea becomes an actual
product (IP) individual can apply to the authority for protection.

legal rights conferred on such products are called as IPR.

(products of human mind)
like - music, logo, Books, inventions, names, designs etc.

IP is divided into 2 categories

Industrial property copyrights

( Inventions (patents),
trademark, industrial design literacy or art works
etc.)

{drawing, paintings,
photographs etc.}

IPR is on intangible assets

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Note - Traditional Knowledge (nuskhe) can also Comes under IPR

why IPR is important

1. Incentivises inventors (as they can get rent, or even sell these rights)

2. gives recognition to owners

3. Prevention from generalisation

4. gives competitive edge

# IPR includes (Types of IPR)

1. Copyright → provides exclusive right to copy the work, modify it and

distribute & display it publically

2. Patents → protect processes, methods and inventions If granted, it

gives you monopoly selling, using, making or importing an invention.

3. Trademarks → like a brand name (any word or symbol )

Example is a trademark of Nike company

FORMS OF MARKET (ECONOMICS)

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